Japanese luxury brands, "Keep Calm and Carry On" in China

  In the heat of the recent Japan-China dispute over the Senkaku / Diaoyu, the media in a bit of a noise were thrown, have popular speculation rather pessimistic. On the impact of the territorial line to the economies of both countries While RSS was largely through mass market reports, hardware industry like Panasonic and Shop Fast populated Retailing Co. Uniqlo closure in the face of protests, stories about the impact of the conflict on the sector luxury second in the world - and the third-largest economies China and Japan less and far between.

Certainly the photos boards and windows are covered up the logos cause of the alarm, but the activities in relation to Japanese companies like Sony, Nissan, Sharp, Aeon and Uniqlo are very different and should be analyzed independently of Japanese luxury brands. Among them Shiseido - The difference lies in the visibility of the mass-market brands in the technology, automotive and fashion industries quickly luxury brands popular largely in the beauty market comparison are (including China sales reached $ 1.1 billion last year) and Shu Uemura SK-II.

Although very popular, especially among the Chinese population increasingly lucrative and independent young woman, flying these cosmetics brands to largely under the radar, both in terms of commercial presence and wear resistance - especially in comparison with logo-heavy European luxury brands. This means that if protesters targeted Chinese companies very visible because they are symbols of the Japanese trade means luxury cosmetic brands such as Shiseido not a sudden change in the consumer fear. On the one hand, these luxury industries tend care cosmetics to collect brand loyalty, especially when Chinese national brands - these are, it is true to the value chain - still can not really compete with the ultra-premium segment . While Chinese buyers not the purchase price of Japanese products in local shopping centers, they can do, as in 2010 and just buy more about travel to South Korea or Hong Kong it.

This does not mean that high-end consumers (seen more violence against demonstrators on the streets of Xi'an and Shanghai last week) are insensitive to the political climate recently, they certainly are. However, for if they boycott the major Japanese brands as a result of this latest spat on two very different political atmosphere and purchasing behavior to confuse. When wearing lipstick and perfume without logo are finally - - adding that the low visibility of the Japanese luxury brands and is no real incentive is the lack of high-quality products and completely change the psychology of the consumer. ABS / CBN News reported earlier this week will be even more Chinese buyers to buy Dior cosmetics instead of SK-II amid boycott calls can still generally recent purchase of Japanese retailers. A customer surname Liu said, "I do not know about Japan, but as the saying goes West," Politics is politics and the economy, the economy. "I care more about the quality of what I bought."

Even at the middle class neither China nor Japan can really afford to be enemies of business. China is Japan's biggest trading partner, with bilateral trade in 2011 rose by 14.3 percent to a record level of $ 345 U.S. dollars, and the two countries want to increase trade with the other as the demand in the U.S. and Europe to weaken. In addition, Japan relies heavily on the resources of China rare earth - a fact clearly in the wake of the two countries last Diaoyu / Senkaku spat in 2010. When Graham Bibby said CEO of Richmond Asset Management in Hong Kong CNBC, "I just at the economics behind it and are looking for a large part of the production of Japan on rare earths, and most of the rare earths that they are getting from China. And The last time that had this kind of dispute, says China no rare earths, so that no more Toyotas and Smartphones. example, at the end of the day they are they took. "But at the same time, these rare earth companies Japanese car or looking to buy electronics from China are manufactured into finished products in factories in China, which employ thousands of workers always Chinese.

For now, it may be wise very visible Japanese mass market brands, to keep a low profile - so many. However, precautions such as closing shop, not a reflection of a glide path for Japanese companies in the long run, especially if we are talking about luxury cosmetics, popular among Chinese consumers. With Australia firmly:

    [Recent events] prove ephemeral bad, but only one version of the same problem that Japanese companies in China have resisted in the past. Japanese companies are as capable as anyone else, mathematics lead these days. In the top of the anti-Japanese rallies drew 80,000 to 100,000 people over the weekend nationwide. They were loud, but represented 0.006 percent of the total Chinese population. The remaining 99,994 percent feel at odds with Shiseido shampoo and lithium batteries to refrain in their phones.

As we transition to the next presidential election and the Beijing approaching next year in Japan, the political changes must still be taken with a grain of salt. Despite the continuing escalation of regional tensions and All this is the bark of the conflict say - as frustrating as it is - may be worse than his bite, at least for the luxury sector in Asia.